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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Risky Business who wrote (7379)	10/30/1997 6:30:00 PM
From: Done, gone.	Respond to of 13949

>> just raking it in! << With a fully automated rake. Bounced Czech (FBN - Below radar.)

To: Risky Business who wrote (7379)	10/30/1997 6:56:00 PM
From: tech	Read Replies (2) \| Respond to of 13949

>> CSGI << :RE raking it in ! FYI CSGI is just starting to sign revenue producing contracts. The 3 million line LSI-Merril Lynch contract is the first of many more to come. 1. With a fully-automated solution and the need for a limited staff CSGI's burn rate will be between $2 to $3 million a year. 2. CSGI would only have to convert a total of 15 million lines at an avg. price of $.25 to be profitable. 3. In a recent conference call CSGI's V.P. stated that they believe they will have between 150 to 200 million LOC from potential projects. 4. CSGI recently finished a pilot for MOTOROLA It is believed that this pilot will lead to a revenue producing contract. 5. CSGI is currently talking to several Fortune 50 companies and the potential for contracts looks very positive. 6. If CSGI manages to only convert a mere 80 million lines of code at an avg. price of $.25 per LOC, their Net Revenues would be approx. $17 Million [(80 million LOC x $.25 per LOC ) - $3 million in expenses] 7. Projects that add up to 80 million lines of code, could consist of 10 to 12 midsize projects. Very conservative figure, given the number of companies that need their code converted. Currently CSGI has 15 different projects they are working on. 8. If we add an additional 5 million shares to CSGI's outstanding, currently 16 million, we would get 21 million shares. If they could produce only $17 million in net revenues that would give them a eps of $.80 per share. [ $17 million in revenue / 21 million shares ] 9. What would be a reasonable P/E ? at a multiple of 20 they would have a stock price of $16.00 ... multiple of 30 a stock price of $24.00 ... 10. I have done extensive due diligence on ConSyGen,and I believe they have the greatest potential of any Year 2000 company around. Even with the extremely conservative numbers I have used here: A. Conversion price of only $.25 per line B. Only converting 80 million lines of code C. multiple of only 20 or 30 the huge margins and growth potential of this company can be seen. This is mainly due to their Fully-Automated toolset and how it limits the amount of employees needed to do conversions. ConSyGen's overhead expenses are a fraction of other conversion houses. Their toolset has been proven to work and convert code in a fast, efficient and literally error free manner. I strongly believe that CSGI will be one of the leading, if not THE LEADING, conversion house. Those who have read my posts know that I am an experienced trader with a respectable track record in Technical, as well as Fundamental, analysis. I know that we will soon hear of more revenue producing contracts from ConSyGen. With a pending contract from MOTOROLA, a NASDAQ listing, and the Alliance with AGISS in Canada, ConSyGen should be placed on the radar screen of all Y2K investors.